4 Money-Savings Moves I Wish I Had Made in My 20s

I've always tried to save money, no matter what stage of life I was in. While I stashed away some money throughout my 20s, I neglected to maximize my savings. I've since learned more about finances and adjusted my money moves to be more successful. Want to learn from my mistakes? Find out which money-saving moves I wish I had made in my 20s.

1. I wish I had stashed my savings in a HYSA

While I had a savings account in my 20s, I ignored the annual percentage yield (APY). I opened a savings account with my local bank and kept my extra cash there. If I had researched and compared the APYs offered for various savings accounts, I would have opened a different bank account with a higher APY. Now, I keep my money in a high-yield savings account so I can earn more interest.

A high-yield savings account is similar to a traditional savings account. However, many of these accounts offer higher APYs -- you can earn more interest while your extra cash sits in the bank. If you want to boost your savings account balance, keeping your savings in a high-yield savings account with a competitive APY is beneficial.

2. I wish I had automated my savings

In the past, I made manual contributions to my savings account whenever I noticed I had extra cash to move out of my checking account. It can be easy to forget if you make manual contributions. Life gets busy and other financial needs pop up.

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Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

While I couldn't afford to save much in early adulthood, I would have benefited from automating my savings. Now, everything is automated. Every two weeks, money is transferred from my checking account to my high-yield savings account. This strategy ensures I don't forget or fall behind on my goals. It's easy and free to set up automatic contributions through your bank.

3. I wish I had made savings a must instead of a maybe

In addition to not automating my sayings, I didn't prioritize saving money. I saw saving as something that would be wise to do, but in my eyes, it wasn't necessary. I likely would have saved much more if I treated my savings contributions like a regular monthly bill.

Let's imagine I could afford to save $50 per month and started saving when I was 20. If I had automated the savings process and treated my savings contributions like a must-pay bill, I would have saved $6,000 plus any interest I had earned in the bank by age 30.

If you can afford to save -- even if it's only $5 a week -- make it a priority. Treat your savings goals the same way you treat your monthly rent or electric bill. Of course, always pay your housing expenses first. But if you have a few dollars left in your checking account, prioritize saving some of whatever money you have left over.

4. I wish I had organized my savings goals

Another mistake I made was keeping all of my savings in one collective pile. Doing this made it harder for me to save for multiple goals.

Now I keep my savings in a high-yield account that keeps my savings goals separate. My account allows savers to stay organized using a bucket system. I have a bucket for each savings goal. This organizational system helps me stay on track.

For example, I have a bucket for my emergency fund. I have another bucket for future vacations. I also have a bucket for upcoming, less frequent expected costs, like my annual car inspection and car insurance premiums, which I pay every six months. You may find tools like this help you save more money in the long run.

Is it time to rethink your savings strategy?

We all make mistakes. After all, we're only human. As you boost your financial knowledge, don't be afraid to adjust how you manage your money. Rethinking your savings strategy and making small changes like the ones highlighted above may help you reach your goals sooner.